A naked put strategy allows investors to collect a premium, and potentially purchase stock at a specific price while they wait. The strategy is bullish as investors generally prefer the option to expire out of the money (OTM); however, should the underlying trade below the strike at expiration, the seller will be obligated to buy 100 shares of the stock times at the strike price, times the number of contracts sold. As a result, investors should only ever sell puts on underlying assets they actually like to own.
